IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-01356163.html
   My bibliography  Save this paper

On the relevance of low-carbon stock indices to tackle climate change

Author

Listed:
  • Manuel Coeslier

    () (Audencia Business School, LHEEA - Laboratoire de recherche en Hydrodynamique, Énergétique et Environnement Atmosphérique - ECN - École Centrale de Nantes - CNRS - Centre National de la Recherche Scientifique)

  • Céline Louche

    () (Audencia Business School)

  • Jean-François Hétet

    (LHEEA - Laboratoire de recherche en Hydrodynamique, Énergétique et Environnement Atmosphérique - ECN - École Centrale de Nantes - CNRS - Centre National de la Recherche Scientifique)

Abstract

In a context where the necessary transition to a climate-resilient economy creates financing needs as well as new and underestimated financial risks for investors, low-carbon or carbonefficient financial indices represent a rapidly growing and promising instrument. By building and testing representative optimization methodologies for low-carbon stock indices, this study investigates their ability to both (i) allow investors to hedge against climate-related financial risks and (ii) promote companies with higher contribution to the energy transition. The analysis is based on a large European stock index for which we benefit from a complete set of bottom-up calculated environmental indicators, including indirect and avoided carbon emissions figures. The results indicate that mainstream low-carbon indices methodologies fail to address the challenges they are based on and call for further improvements in order to align diversified financial instruments with ambitious climate objectives.

Suggested Citation

  • Manuel Coeslier & Céline Louche & Jean-François Hétet, 2016. "On the relevance of low-carbon stock indices to tackle climate change," Post-Print hal-01356163, HAL.
  • Handle: RePEc:hal:journl:hal-01356163
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01356163
    as

    Download full text from publisher

    File URL: https://hal.archives-ouvertes.fr/hal-01356163/document
    Download Restriction: no

    More about this item

    Keywords

    Sustainable finance; lowcarbon indices; Carbon footprint; Financed emissions; Avoided emissions;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-01356163. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.